PROJECT WORK ON ENTREPRENURES

RINZAUVA &THE CHOCOLATE FACTORY Pvt. Ltd.

Project work on entrepreneurship submitted to Mizoram University in partial

fulfilment of the requirement for the award of degree of Bachelor of
Commerce.
Submitted by:

LALRINZAUVA

Roll No. : 1703BCOM055

Registration No. :

GOVT.HRANGBANA COLLEGE

DEPARTMENT OF COMMERCE

Aizawl -796007
 PROJECT WORK ON ENTREPREANURES
CHOCOLATE INDUSTRY
INTRODUCTION

The chocolate had its beginning in the times of Mayas and the Aztecs
, when they beat cocoa into pulp and made bitter frothy chocolate
out of them . They first become popular in Europe in a highly
unrefined form. Then the Hersey food company was the first to bring
out chocolate in the currently popular solid form. The main
ingredients of chocolate is coco grown mainly on equatorial zones
and of the consumer looks for variety he goes in for some of that
company own Sugar milk solid and permitted emulsifiers. Coco
constitutes nearly 40% of the total row material cost.

In the research I have a survey the product performance and buying

behaviour of this product. Which are consumed by people of all ages.
During this research , I have interacted with people of Aizawl ,
Mizoram ,After this research ,I came to know hoe people perceives
this product on the variables like prices , quality , quantity, taste ,
packaging , satisfaction , brand loyalty ,etc. I also came to know
which particular brand of chocolate is most preferred by people of
different age groups, and how much chocolate they consumed,
whether they buy small, big or family pack. I have tried to explain the
e tire research and facts products wise
 PROJECT WORK ON ENTREPREANURES
CHOCOLATE INDUSTRY ANALYSIS
THE BASIS

NATURE OF INDUSTRY:
The chocolate chocolate industry in India works at different
level that includes chocolate giants like Cadbury’s, Dairy Milk, etc.,
small chocolate manufacturing, chocolate retailers chocolate
importers and people who make chocolate at home.

Diversification and Innovation is the need of the hour and

chocolates are exactly doing that to increase their client base.

Indians are recorded the highest growth (53% in US$ term)

during 1998-2003, again spread by consumers trading up to value –
added production. In 2003, for example, Glaxo Smith Kline re-
touched Horlicks for kids, specially targeted at young children as well
as launching Horlicks in there new flavours.

INTERNATIONAL SCENARIO
(PLAYERS)
THE INDUSTRY
1. CADBURY’S INDIA LIMITED

2. NESTIE INDIA

3. AMUL INDIA
4. GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION

5. COCOA MANUFACTURING AND PROCESSORS CO-OPERATIVE (CAMPCO)

6. BAR COUNT LINES

7.5-STARS MILK

8. MARS CHOCOLATE

9. KRAFTS FOODS

10. FERRERO

The population of India presents multiple avenues for companies to

foray into India. The regulatory environment, too, has become conducive for
foreign players to operate in the country. There is immense scope that the
country presents to players in terms of hiring home grown talent to grow
business, given the educational boom.

Malts and chocolate based drunks are often seen as relatively unsophisticated
in developed markets in the west. But in many countries, in particular in Latin
America, they are big business indeed, marketed mostly as an excellent source
of nutrition. In countries, where food quality is often poor. But improving sells
in other countries will depend on finding a premium positioning.

They are traditionally consumed as milk, substitutes there and marketed

as a nutrition drink, mainly consumed by the old, young and the sick. Sales
have also been aided by improve retail and distribution in recent year,
combined with a large child and youth consumed of based.
 MARKET SHARES
Market shares of top 3 and bottom 3 players.

Cadbury Nestle Amul Kraft food Ferrerro Mars

70% 24% 3% 1% 1% 1%

CLASSIFICATION OF PLAYERS

*Market Leader:-

Cadbury

*Challengers:-

Nestle India

Amul Induia

*Followers:-

Barry Callebaut

*Nichers:-

Mars Inc.
ORGASIONATIONAL STRUCTURE
VISION AND OBJECTIVE
VISION
A strong and successful Chocolate, Biscuit and Confectionery
Industry, respected by stakeholders with products enjoyed by
consumers as part of a balanced diet Caobisco and its members will
follow this objective by encouraging:

1. The safety, quality and taste of their products, whilst maintaining

the culture and tradition of their origins;

2. The development of a business environment in which companies

can meet the needs of their customers;

3. That products comply with the regulatory framework at national

LEVEL

4. That raw materials are sourced and products manufactured in a

responsible manner from an economical, environmental and social
point of view.

OBJECTIVES
1. Promote the Caobisco food categories to stakeholders through
building confidence and trust via responsible and transparent
practices throughout the supply chain, meeting consumers needs for
safe, high quality, tasty and nutritious products;

2. Influence public policy, at European and Global levels via proactive

and effective networking and communication with external
stakeholders. Use aligned internal policy frameworks to influence
current issues and to develop positions on future issues;
3. Enhance value to members by addressing their needs via a
transparent, timely and efficient decision making process on all non
competitive issues relevant to member’s activities. Make best use of
members' expertise and commitment in order to optimise efficiency
and aligned positions through collective engagement.

SCOPE
As learning is a human activity and is nature as a breathing.Despite of
the facts that learning is take place . How individual learn is a matter
of interests to marketers. They want consumers to learn about their
products , product attributes , potential consumer benefits , how to
use , maintain or even dispose of the product and new ways of
behaving that will satisfied not only the consumers need,but the
marketers objective.

CONSUMER PREFERANCE
All marketing starts with the consumer. So consumer is a very
important person to a marketer. Consumer decides what to
purchase, for whom to purchase , why to purchase , from where to
purchase and how much to purchase. In order to become a
successful marketer, he must know the liking or disliking of the
consumers. He must also know the time and quality of goods and
services, a consumer may purchase, so that he may store the goods
or provide the services according to the liking of the consumer. Gone
are the days when the concept of market was let the buyers beware
or when the market was mainly the sellers market. The
manufacturers produce and the sellers sell whatever the consumers
like. In this sense, “Consumer is the supreme of the market “.

As consumer, we play a vital role in the health of the economy local,

national or international. The decisional we make concerning our
consumption behavior affect the demand for the basic row
materials, for the transportation, for the banking, for the production
, they effect the employment of workers and development of
resources and success of some industries and failure of other. Thus
marketer must understanding this.

ADVENTAGES AND DISADVENTAGES OF CHOCOLATE

ADVANTAGES:

A classic chocolate can definitely renew the soul for it has a chemical
called tryptophan that helps the brain to function well and creates a
feeling of excitement or elation. Moreover, it has anti-oxidants that
can also be found in teas or wines.

It lowers the cholesterol.

Also lowers the Blood Pressure.

Produces Anti-oxidants into the body ,good for preventing

premature aging.

Lowers the risks of heart problems because it is rich in flavonoids and

gallic acid which include protective elements for cardio.

It also promotes good digestion.

It is also good for preventing cancer.

Current studies proven that it slows down the decline of nervous

activities which happens with the age.

It indicates a help for the treatment of kidney stones and anemia.

It prevents the clumping of blood platelets which results in blood

clots.

Many of us, chocolate lovers, know that chocolate contains Flavanol

This compound prevents clogging of the arteries. Flavanol also helps
to protect against sunburns.

While chocolate, particularly dark chocolate has a range of health

advantages, from preventing pre-eclampsia, according to the journal
“Epidemiology,” to protecting your organs and cells against free
radical damage, there are a variety of disadvantages to eating
chocolates, as well. In addition to nutritional issues that can affect
your health, chocolate has other risks, especially when eaten in large
quantities.

DISADVANTAGES:

The wonderful and enticing feeling of a person in eating chocolate

has their disadvantages. But the craving for chocolate deserves only
a single bite of chocolate. Even there are chocolates that are low in
fat and calories; still it has oils that can transfer the fat to the heart.
Therefore, a chocolate lover should look unto the label first.
Dark chocolates are high on calories with high fat and sugar.

It contains some elements that have addictive properties such as

caffeine, theobromine, and sugar which results in mood elevating
and also contains phenethylamine which releases endorphin in the
brain.

It also contains vasoactive amines that lead to migraine problems.

Dilates the vessels of the brain.

Moreover, it has high quantity of arginine which is a necessity in the

replication of the virus herpes. Therefore, it is recommended to
avoid dark chocolates especially those who have recurring and active
herpes infection.

MARKETING STRATEGY
1.Economics:
The size of the chocolate market is very large as well as we could

Trends in consumers Preference

The range and variety of chocolates available in malls seems to be

growing day by day. Which leads to lot of impulse sales for chocolate
companies.

Chocolate which used to be unaffordable is now considered mid

priced

Branded chocolates have become more popular.

Instead of buying sweet on valentines day etc. people prefer to buy
chocolates

2.BARRIERS TO ENTRY
Small start up costs

Ensuring goods quality products to the customers

High level of competition from the well established brands

To keep price of the product low, as it a price sensitive market

3.OVERCOMMING THE BARRIERS TO ENTRY

To overcome the barrier of small start up costs are machinery
would be taken for lease for first few years of business
Marketing of our products would be on the basis good
quality and healthy products to provide a competitive
advantages

4.FROM CUSTOMER POINT OF VIEW

Chocolates is the products which shows their impulse buying
behavior. Customers are looking for low price chocolates and also it
should have good taste.
5.FEATURES AND BENEFITS

Milk chocolate

Milk chocolate is the stimulator, to the brain, to the emotion, thus

increase your stamina.

Milk chocolate is high in vitamins B1, B2, D and E, It also contains

potassium and magnesium.

Milk chocolate contains anti-oxidant that boost the immense system.

PRODUCTS
1.FRUIT AND NUTS CHOCOLATE

Almond helps in the creation of new blood cells, hemoglobin and

help in proper functioning of vital organs of the body

Almonds also help in weight loss, lowering blood pleasure, reduction

in risk of recurrent coronary heart disease, solving constipation, etc.

Raisins help in digestion problems

Raisins contain considerable amount of Iron

Cashew nuts provide protein and fiber to body

Cashews have no cholesterol

2.PLAIN CHOCLATES

Chocolate contains essential trace, elements and nutrients such as

Iron, calcium and potassium and vitamins A,B,C,D,E.

Cocoa is also the highest nature source of magnesium

Cancer fighter

High in anti-oxidant

CUSTOMERS ( WHOLESALERS AND RETAILERS)

Every chocolate producer have a partners for selling a chocolate in

wholesale and retail to the consumer

PROMOTIONS

Local news paper

Local TV Channel

Local Radio Station

Through pages and account on social networking sites (Facebook and

twitter etc,)
DISTRIBUTION CHANNEL
Our products would be distributed through channels like wholesalers
and retailers and our own retail outlet

LOCATION OF THE BUSINESS

For a business, the proposed location would be

Name : Rinzauva and the Chocolate factory Pvt. Ltd

Location : Thentlang , Serchhip

Machinery used in Chocolate Manufacturing

1. ROASTER

2. WINOVER

3. COCOA PRESS

4. GRINDER

5. MIXER

6. REFINEREE

7. TEMPERER

8. CAVEMIL

(Around 15% depreciation is calculated on machines according to

their types)
9.FURNITURE

Types of furniture in factory:

(i) Tables: Rs 15,000

(ii)Sofa-set: Rs 26,000

(iii) Computers: Rs 80,000

(iv) Exhaust fans: Rs 6,000

(v) Air conditions: Rs 66,000

The depreciation on each computer is 60% and on other furniture is

10%

SALARY
POSTS SALARIES(RS) (Approx.)

Manager 22000

Executive officer 15000

Skilled labour 12000

Semi skilled 9000

Unskilled 7000
MANUFACTURING PROCESS

Cocoa trees are native to South America, and they have a very long
history of cultivation in Central America, but these days cocoa is
grown in more than 40 countries located on or near the equator.
Cocoa beans grow in pods, with 20 to 60 beans per pod. The number
of pods produced by each tree depends on several factors such as
the variety of cocoa being grown, the skill of the farmer and the
amount of chemical inputs that are used. But on an average, each
tree produces about 75 pods per year. 75 pods will yield
approximately 3kg of dried, saleable cocoa beans.

After the cocoa pods are cut from the tree, the fresh beans must be
fermented for up to a week in order to develop so called “aroma
precursors”, via a series of chemical reactions. To ferment properly,
the beans must be placed in a large enough pile to prevent them
from drying out. Once the beans have been adequately fermented,
they must be dried in order to halt the fermentation process, and
remove excess moisture. Proper drying helps prevent the beans from
rotting or going moldy.

CLEANING:
In manufacturing of chocolate first, the beans must be clean of
foreign matter such as dust, just fibers, sticks and stones. Iron debris
is also cleaned up by magnets.

ROASTING :
After this, roasting of cocoa beans takes place. Roasting process is done at 180 degree centigrade
temperature for almost 30 min. Roasting accomplishes a number of things : It helps separate the
outer husk from the inner bean and makes cracking and winnowing much easier. It also virtually
sterilizes the cocoa beans. This is rather important as the conditions
in which cocoa beans are fermented are naturally full of bacteria,
fungi and molds. There is a quantifiable risk of infection from
unroasted cocoa bean. Roasting reduces this risk. Various chemical
reactions occur when cocoa beans are roasted and proper roasting is
integral to good flavored chocolate.

WINNOWING:
The goal in winnowing is to crack the coca beans into pieces and then
separate the husk from the nib. Top make chocolate this husk needs
to be fully removed. Thus husk is send to cattle field and it is used as
food of animals. Running the roasted cocoa bean through a
winnowing machine to just crack the cocoa beans into large pieces
(called nibs) and then blowing husk away is another option.

GRINDING:
After winnowing, next step in chocolate making is to grind them until
they liquefy into cocoa liquor. This liquid is called cocoa mass. The
temperature of this cocoa mass is 120 degrees centigrade. Then the
cocoa press machine is used for separating cocoa mass into cocoa
butter (which is liquid at an elevated temperature) and solid cakes,
which can be processed into cocoa powder later. Generally, a
hydraulic cylinder is provided, to make cocoa cake. During a pressure
cycle the pots are filled with heated cocoa mass via supply lines and
subsequently they are compressed. The cocoa butter is there by
pressed out through the filters and discharged. In this stage of
grinding, cocoa butter and sugar is mixed in the liquid in
proportionality.
CONCHING:
Conching is a modern process used in making chocolate with
characteristic taste, smell and texture. Conching process is done at
80 degree centigrade. Refining is the process of reducing the particle
sizes of both cocoa solids and sugar crystals in somewhere 20-30
microns. Your tongue loses its ability to determine texture and
grittiness at around 50 microns. Under about 15 microns the
chocolate can get gummy. So refining is a tough job.

TEMPERING:
Chocolate tempering is needed because it is what gives the
chocolate bars finished glossy, shiny appearance. At last in cavemil,
the molding of chocolate liquid is done. Here temperature regulating
is very important. Thus, the chocolate is made of any shape you want
by this process.

PACKAGING:
 In a production process packaging is equally important like any
other function of production.
 In chocolate plant, there is an individual packaging
department.
 Packaging department is fully hygienic. All workers are given
proper uniforms and caps in order to maintain their health and
cleanliness.
 There is a fully automatic packing machine.
 After packaging, the products are taken to the distributors
throughout the world by their own vehicles.
Future Plans
 The future of any institution is a subject which requires
constant attention. The future is perceived is one embroiled
with hardship.
 Hardship may surface in many forms as global demands and
changes, foreign affiliations, competition, liberalization,
changing values, urban shifting etc. are some of them to name
which we foresee and union has to cope with these.
 In future union should be adopt latest technology. Union
should not sit foremost quality of product and co-placement
with existing product range but think in more innovative way.
 To stay ahead research and development unit has to best
lengthened. Union also thinks of price to sustain leading
position in the market
 Prices will have to remain steady and to so union should
concentrate on reducing and maintenance expanse rather than
proposing increasing product

CONCLUSION
For nearly every industry , sustainability is a key objective. Creating a
sustainable chocolate industry benefits all of the industries stake
holders , from the grower to the manufacturer .

The chocolate industry is working with relevant with partners to

create a sustainable future . By co- operating in this way, it is
possible to improve the sustainability of the industry;better
conditions on farms;better quality cocoa ; fair prices for all
contributors ; superiors and more varied chocolate;more satisfied
customers